Twitter blew past estimates with its Q3 earnings

By: Miguel A. Rodriguez

15:57, 30 October 2020

Unexpected market reaction after Twitter posted its quarterly earnings

Twitter posted its Q3 earnings report after it had a bumpy year. The company was involved in a significant Bitcoin scam-related hack in July, causing the FBI to start an inquiry to determine how safe users’ data is kept. Moreover, Twitter’s CEO Jack Dorsey participated in a hearing of the Senate concerning Section 230 which averts tech companies from being liable for the content posted on their platforms.

Regardless of the problems, the company posted an adjusted EPS of $0.19, topping the 6 cents expected. The revenue came in higher than the $777 million consensus at $936 million. The actual figures are 14% higher than those reported at the same time last year. $513 million from the overall revenue came from Twitter’s largest market – the US.

Despite the satisfactory results that it had money-wise, things turned out to be different user-wise. In Q3, the number of average monthly users increased to 187 million, below the 195 million expected by the markets.

Twitter’s revenue generated by ads grew 15%, reaching $808 million. The increase was boosted by live events and previously postponed product launches.

Following the news, Twitter stock price closed just shy of 15% lower.


Share this article

This information prepared by is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.